look news india
Income Tax Saving Tips: Fixed deposit is one of the first choice savings schemes of Indians. Amidst the growing craze of mutual funds and stock market, the perspective of FD is different. Even today, most people in the country consider fixed deposit as the safest investment.
Your investment in FD provides fixed returns with guarantee. If you are married and want to invest in fixed deposits then this information is for you.
How much will you benefit by doing FD in the name of your wife?
Generally, most women fall in the lower tax bracket or are housewives. Housewives are not liable to pay any tax. In such a situation, if you make a fixed deposit i.e. FD in the name of your wife, then you will avoid paying TDS. You can also avoid paying additional tax.
TDS is deducted on returns of more than Rs 40,000
If the interest earned from FD in a financial year is more than Rs 40,000, then you will have to pay 10 percent TDS. If your wife's income is low, then she can avoid paying TDS by filling Form 15G. If you make a joint FD with your wife and make her the first holder, then also you can avoid paying TDS as well as higher tax.